Group Assignment 4 Al Ain
Group Assignment 4 Al Ain
Group Assignment 4 Al Ain
GROUP PROJECT 4:
AL AIN DAIRY: MARKET EXPANSION
GROUP MEMBERS:
Al Ain Dairy began in 1981 as the first dairy farm in the UAE. It was set up under
the directives of the late H.H. Sheikh Zayed Bin Sultan Al Nayhan. At that time, they
had only 200 head of cattle, all imported from Australia. Al Ain Dairy’s challenge
was to provide consumers with an alternative to powdered milk or recombined
canned milk. A milk processing plant was commissioned the same year, and for the
first time consumers in the country were able to purchase locally produced fresh
pasteurised milk and yoghurt from their supermarkets. Over the last five
generations, they have not imported a single cow. Today, Al Ain Dairy has 5,000
heads of cattle in three farms.
In 1996, Al Ain Dairy was merged with Al Ain Poultry to form Al Ain Farms for
Livestock Production with a paid up capital of AED140 million (1 USD ¼ 3:68 AED).
Under the directives of the UAE President, almost 54 per cent of the shares of the
newly-formed company were distributed freely to 7,600 low income UAE citizens
including widows and orphans. The company growth has been healthy: Al Ain Dairy
grew in double figures by 12 per cent. This is remarkable as the rest of the world
struggles with recession and the organic market prediction for growth this year was
only 6 to 7 per cent, organic growth. Al Ain Dairy sources 70 per cent of the milk
from its own local farms and 30 per cent from local farms. The farm currently
produces 210,000 litres of milk and up to 80,000 litres of juice per day.
There are four basic values that guide the management leadership which is
people, customer relationship, business conduct and commitment to the
environment. Lastly, the success of Al Ain Diary depends on the conduct,
professionalism and responsible attitude of all employees and its leadership and
successfully received the ISO 22000 in year 2010.
2.0 CHALLENGE
Al Ain Diary company challenges in order to expand their business. First
challenge is providing the consumers with an alternative to powdered milk or
recombined canned milk. This challenge was face at the beginning of the business
start, which is in conclusion Al Ain Diary is new to the to market and lack of
consumer need knowledge. Well, they managed to overcome this issue later with a
proper study and research of the consumer need and wants. Moreover, they
managed the consumer able to purchase locally produced fresh milk and yoghurt
from their supermarket.
Strengths: The benefits for Al Ain Dairy are they can create a brand recognition
and customer loyalty towards their products before the competitors enter the
industry. Normally, competitors will set a pioneer company as a benchmark for them
to earn the market share and success.
Threats: Elements in the environment that could cause trouble for the business
or project. Different countries may impose a different regulation to the seller. The
purpose of the regulations is to protect a local product and to control the volume of
an imported product in their country.
3. The operational strategies could imply low costing of products in a better way as
well. The advent of new technologies in a very short span of time in market
needs a special attention.